Oil prices are actively rising on Wednesday morning after declining at the end of the previous session, traders are evaluating signals of a sharp decline in oil inventories in the United States.
The price of October Brent futures on London’s ICE Futures exchange by 8:01 a.m. Wednesday is $85.59 a barrel, up 68 cents (0.8%) from the previous session’s close. On Tuesday, these contracts fell in price by $0.52 (0.6%) – to $84.91 per barrel.
Quotes of futures for WTI crude oil for September at the electronic trading of the New York Mercantile Exchange (NYMEX) by the specified time rose by 69 cents (0.85%) and amounted to $82.06 per barrel. At the end of the previous session they decreased by $0.43 (0.5%) – to $81.37 per barrel.
A negative factor for the oil market on Tuesday was the strengthening of the dollar, as it increases the cost of commodities for holders of other currencies. The index calculated by ICE, which shows the dollar’s performance against six major world currencies, rose 0.4% the day before.
“The rally in the oil market is ready to take a pause amid declining stock indices in the U.S. and a stronger dollar,” said Edward Moya, senior analyst at Oanda.
However, oil remains attractive to investors and buyers are likely to actively purchase contracts on drawdowns, he added.
Meanwhile, data from the American Petroleum Institute (API) released the previous day showed that US oil inventories collapsed by 15.4 million barrels last week. If the data is confirmed in the official figures from the Energy Department, which will be released at 5:30 p.m. Wednesday, the drop will be a record since 1982.
